At Design Data Technology Partners, we work alongside nonprofits every day, and we understand how essential your technology tools are to delivering your mission. With upcoming changes to Microsoft’s nonprofit licensing grants, we want to make sure you’re equipped with clear, helpful information—and that you feel supported in making the right decisions for your organization.
Microsoft & Nonprofit’s
Microsoft’s commitment to supporting nonprofit organizations with technology dates back to 1997, when it introduced the Nonprofit Technology Leadership Grant program. This initiative provided large-scale software donations to national nonprofits, enabling them to enhance operational efficiency and service delivery. In 1999, Microsoft awarded over $7.1 million in software to 10 national nonprofit organizations, including the American Red Cross and Habitat for Humanity International.
A significant milestone occurred in September 2013, when Microsoft launched the global availability of Office 365 for Nonprofits. This donation program aimed to provide qualifying nonprofits and nongovernmental organizations (NGOs) with access to Microsoft’s cloud-based productivity and collaboration tools. Initially available in 41 countries, the program expanded to up to 90 countries by July 2014.
As of fiscal year 2022, Microsoft provided over $3.2 billion in technology discounts and grants to more than 300,000 nonprofit organizations globally . In the United States, a significant number of nonprofits have benefited from these offerings, leveraging tools like Microsoft 365 to enhance their operations and mission delivery.
Starting July 1st, 2025, Microsoft is updating its nonprofit licensing structure. While this includes the retirement of some long-standing free license grants, there are still valuable alternatives available—and now is a great time to make sure your setup still fits your needs.
What’s Changing?
On July 1st, 2025 Microsoft will retire the following nonprofit grant programs:
- The grant for 10 free Microsoft 365 Business Premium licenses
- The Office 365 E1 grant offer
This change will impact organizations currently using those free grant licenses. If your nonprofit has built part of its technology budget or operations around these offerings, it’s important to start planning now.
What Support Is Still Available?
Even though the previous grant offers are ending, Microsoft is continuing its commitment to nonprofits through:
- Up to 300 free licenses of Microsoft 365 Business Basic
- 75% discounts on several Microsoft 365 nonprofit plans, including Business Premium and Office 365 E1
These options provide a strong foundation for communication, collaboration, and productivity through services such as Outlook, TEAMS and many others—and for many nonprofits, they can be a cost-effective upgrade.
How Your Organization Can Prepare
To ensure a smooth transition before the July 1 deadline, we recommend the following steps:
- Review Your Current Licensing
Take a look at your current Microsoft 365 licenses. Determine which users are covered by the retiring grant programs and identify what licenses will be needed going forward.
- Assess Your Organization’s Needs
Think about how your team uses Microsoft tools—email, file storage, video meetings, security features. Are there areas where you can streamline? Are you paying for more than you use?
- Explore the Updated Nonprofit Plans
Microsoft’s discounted plans offer robust features at a significantly reduced cost. You may find that the Business Basic plan fits many of your users’ needs, while Business Premium might be ideal for administrative or leadership roles.
- Start Planning Your Transition
Avoid a last-minute scramble. By creating a transition plan now, you can ensure uninterrupted access to the tools your team depends on.
Support from your IT Partner
At Design Data Technology Partners, we understand the unique challenges nonprofits face in adapting to technological changes. Our team is dedicated to assisting organizations in:
- Navigating Licensing Changes: Providing clarity on new Microsoft 365 offerings and identifying the best fit for your organization.
- Transition Planning: Developing a comprehensive plan to ensure a seamless switch to the new licensing model.
- Ongoing Support: Offering continued assistance to address any questions or concerns during and after the transition.
We’ve helped many nonprofits adapt to software and infrastructure changes, and we’re here to make this process easy and stress-free for you, too.
Conclusion
While the upcoming changes to Microsoft’s nonprofit grants may require adjustments, they also present an opportunity to reassess and optimize your organization’s technology infrastructure. By proactively planning and seeking the right support, your nonprofit can continue to leverage powerful tools to further its mission.
If you need help evaluating your options or putting together a transition plan, we’re ready when you are. For personalized assistance and to explore the best options for your organization, contact Design Data Technology Partners or your current IT provider today.
Sources: The Official Microsoft Blog Nonprofit Users Microsoft Supporting Nonprofits
